Socio-Economics & History Commentary

Gregory Mannarino: Fed Going to Kill Dollar – Will Be Forced To Print Moneyby Greg Hunter’s USAWatchdog.com (Early Sunday Release)Trader/analyst Gregory Mannarino says Fed Head Janet Yellen “lied” when she spoke last week about the “mystery” of not hitting the Fed’s inflation targets. Mannarino explains, “It’s no mystery. You have to choke or laugh or barf when you hear her say something like that, and no one checks her on that. It’s an absolute lie, an incredible lie . . . the economy is dead in the water. It’s Economics 101. That’s why she can’t create inflation. It’s no mystery. The cash isn’t moving. The cash is not moving because the economy is going nowhere. She can perpetuate the lie because she has managed to inflate the stock market. The average person looks at the stock market and says the stock market is going up. So, that means our economy is doing well. It’s an incredible thing, but it’s just not the truth. This is how they can twist people’s minds. By keeping the market elevated, it is an illusion. The illusion becomes real to the uninformed.”–Mannarino says rates are going higher, and that will be bad for house prices. Mannarino explains, “If Yellen is successful and the yield curve starts to normalize, because right now it’s flat, that would put pressure on housing, and cash would come out of housing. You would lose the wealth effect. You can get a selloff in bonds, a selloff in the stock market, and this could turn into something very, very ugly, which it’s going to do one way or the other. Again, if Janet Yellen is successful, the cost of money or the cost of cash will rise. What does that mean? That means the dollar, theoretically, should get stronger. Multinational companies’ earnings are going to suffer. That will put more pressure on the stock market. . . . It’s kind of unusual that the Fed is choosing right now to normalize their balance sheet. The Fed is talking about getting rid of those mortgage-backed securities right now at the top of a housing market bubble. They know it’s a bubble, and they re-inflated that bubble on purpose.”–read more.